Australian markets are poised for a higher opening, with SPI futures indicating a 0.53% increase. However, potential gains may be curtailed by President Trump’s recent tariff announcements, casting a shadow over global markets. Trump detailed plans post-Wall Street close, suggesting a minimum 10% tariff on all countries, including Australia. Australian beef exports were specifically mentioned. Prime Minister Albanese criticized the tariffs as unwarranted, opting against reciprocal measures, while Asian nations face a potentially heavy impact.
The global financial landscape reacted sharply to the tariff news. S&P 500 futures tumbled by 1.7%, signaling expected losses on Wall Street’s Thursday opening. Concurrently, the dollar index declined by 0.62%, while the Euro extended its gains. Locally, the Australian trade balance for February anticipates a $5.4 billion surplus, alongside upcoming job vacancy data releases. These factors create a complex environment for investors, balancing domestic economic performance with external trade uncertainties. Bradley Walsh from Maqro suggests that China’s shift in import partners may present an opportunity for Australia amidst the tariff tensions.
